Ethereum News Today: EU Eyes Public Blockchain for a Cash-Like Digital Euro Future

The European Union is actively considering the deployment of a digital euro, with preliminary discussions focusing on the potential use of major public blockchain networks such as Ethereum and Solana to support the initiative. According to the Financial Times, sources close to the project have indicated that the European Central Bank (ECB) is examining the feasibility of running the digital euro on a public blockchain rather than a private one [1]. This would mark a notable departure from existing CBDC models, particularly in China, where the central bank's digital currency operates on a private network [1].

Public blockchains, unlike private ones, are open to all participants and allow for greater transparency and decentralization. This shift in approach reflects a broader strategic interest in leveraging decentralized technologies to ensure a resilient and inclusive payment system. The ECB has not yet confirmed the specific technological framework it is pursuing, and no official response has been received regarding the reported consideration of Ethereum or Solana [1]. Should the ECB move forward with a public blockchain, it would align the digital euro more closely with U.S. stablecoins, which are also based on public blockchain infrastructure [1].

The rationale for introducing a digital euro is rooted in the ECB’s broader objective to preserve the relevance of public money in an increasingly cashless society. As cash transactions decline across the eurozone, the ECB faces the challenge of ensuring that central bank money remains a viable and accessible option for everyday transactions. Between 2019 and 2024, the use of cash in the euro area dropped from 68% to 40% in volume and from 40% to 24% in value [2]. The ECB argues that without a digital equivalent, the central bank risks ceding its role as a key player in daily financial activity to private and non-European payment platforms [2].

A digital euro would offer features akin to cash, such as privacy, universal acceptance, and low-cost access, while being available in both online and offline formats [2]. The ECB envisions a system where users can access the currency through a digital wallet, load it with funds from a bank account or physical cash, and conduct instant, fee-free transactions. Importantly, the digital euro would not track user behavior or personal data, ensuring privacy comparable to cash [2]. However, there may be caps on the amount individuals can hold to prevent large-scale withdrawal from traditional bank accounts.

The timeline for implementation remains in its early stages. The ECB has outlined a preparation period ending in October 2025, followed by a legislative decision by the Governing Council in early 2026 [2]. If approved, a development phase is expected to take two to three years, with a potential launch window between 2027 and 2029 [2]. Despite these long-term projections, the ECB has emphasized that the digital euro is not intended as a geopolitical tool to challenge the dominance of the U.S. dollar. Instead, it is positioned as a retail payment solution designed to serve European consumers and businesses [2].

The ECB has expressed concerns about the growing reliance on U.S.-based stablecoins, which currently dominate 98% of the stablecoin market [1]. This dependency raises questions about financial sovereignty and the long-term stability of the eurozone’s monetary system. ECB officials have called for a digital euro to reduce reliance on foreign payment platforms and to establish a standardized framework that fosters competition and innovation [2].

Source:

[1] EU exploring Ethereum, Solana for digital euro launch (https://cointelegraph.com/news/europe-mulls-ethereum-solana-digital-euro-launch)

[2] Cash is king: Why does the eurozone need a digital euro? (https://www.euronews.com/business/2025/08/20/cash-is-king-why-does-the-eurozone-need-a-digital-euro)